Stock fact sheet · data as of
HUTCHMED (China) Limited (HCM): fair value, margin of safety and Wheel Score
Ticker symbol HCM · Healthcare · Drug Manufacturers - Specialty & Generic · Hong Kong SAR China · ADR · Growth
HCM is an American depositary share (ADR): the US listing of HUTCHMED (China) Limited, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is HCM undervalued?
HUTCHMED (China) Limited (HCM) closed at 13.92 on 5 Nov 2026, 386% above the GLS average fair value of 2.86. 7 of the 7 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 7 models disagree widely: Graham Number gives 0.8226 while GLS Growth gives 6.04. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, HCM is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 24, growth score 46, out of 100).
Nine valuation models for HCM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 0.8226 | -94% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 5.64 | -59% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.47 | -82% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 6.04 | -57% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 1.70 | -88% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 2.28 | -84% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 1.10 | -92% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 6.11 | -56% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 22.78 | +64% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - HCM passes 6 of the nine Piotroski tests, which passes the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 1.6 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are high - ROIC 34.3%, ROE 37.0%, ROA 26.1% - with debt at 0.08 times equity and a free-cash-flow yield of 0.4%.
HUTCHMED (China) Limited pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Other Collaboration Royalties Revenue 45%, Commercialization Services 30%, Collaboration Research And Development 18% (fiscal year FY2025).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 34.3% |
|---|---|---|---|
| GLS Moat | 1.6 / 10 | ROE | 37.0% |
| Debt / equity | 0.08 | ROA | 26.1% |
| Free-cash-flow yield | 0.4% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 31: Weak
HCM scores 31 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (84 open interest, 21 a day); and filter 3, below fair value - trades 386% above our fair value; and filter 5, can repay its debt - debt with no positive cash flow to repay it, and the parts are thin too - value weak, premium strong, moat weak, health good, red flags good, option trading weak, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 52% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 84 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 102k shares a day on a market cap of $2.4B, with a beta of 0.43 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (84 open interest, 21 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 386% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Fails | debt with no positive cash flow to repay it |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 386% above fair value | |
| Premium | Strong | implied volatility 52% | |
| Moat | Weak | moat 1.6/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Good | Red Flags score 85/100 | |
| Option trading | Weak | 21 contracts a day, 84 open interest | |
| Stability | Fair | beta 0.43, $2.4B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for HCM in the nightly calendar.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Drug Manufacturers - Specialty & Generic
The 12 companies below are the closest to HUTCHMED (China) Limited by market cap within the Drug Manufacturers - Specialty & Generic industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RGC Regencell Bioscience Holdings Limited | 5.42 | 0.0281 | -19191% | 8Weak | $2.7B |
| PRGO Perrigo Company plc | 15.83 | 47.02 | +66% | 44Weak | $2.2B |
| TRLV Trulieve Cannabis Corp. | 11.60 | 25.12 | +54% | 30Weak | $2.0B |
| BHC Bausch Health Companies Inc. | 8.34 | 145.40 | +94% | 53Fair | $3.1B |
| ALVO Alvotech | 4.67 | - | - | 14No options | $1.7B |
| ANIP ANI Pharmaceuticals, Inc. | 71.65 | 251.58 | +72% | 49Weak | $1.6B |
| SUPN Supernus, Inc. | 28.21 | 87.23 | +68% | 48Weak | $1.6B |
| PAHC Phibro Animal Health Corporation | 39.43 | 47.35 | +17% | 43Weak | $1.6B |
| PCRX Pacira BioSciences, Inc. | 36.40 | 43.35 | +16% | 29Weak | $1.5B |
| ETON Eton Pharmaceuticals, Inc. | 50.72 | 15.29 | -232% | 26Weak | $1.4B |
| CRON Cronos Group Inc. | 3.51 | 2.98 | -18% | 37Weak | $1.3B |
| AMPH Amphastar Pharmaceuticals, Inc. | 28.02 | 45.64 | +39% | 50Fair | $1.2B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about HCM
Is HCM undervalued right now?
No: at 13.92 the stock trades 386% above the GLS average fair value of 2.86 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of HCM and what does it mean?
HCM scores 31 out of 100 (Weak) - it fails Wheel Trade Filters 1, 3, 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for HCM?
2.86 per share as of 5 Nov 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does HUTCHMED (China) Limited report earnings next?
No upcoming earnings date is recorded for HCM in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does HCM have listed options, and how liquid are they?
Yes. The nightly snapshot found 16 listed contracts with 84 open interest across all expiries and implied volatility of 52% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is HCM an ADR?
Yes. HCM is an American depositary share (ADR): the US listing of HUTCHMED (China) Limited, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.